BILL NUMBER: SB 584	CHAPTERED  10/10/99

	CHAPTER   744
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 6, 1999
	AMENDED IN SENATE   MAY 28, 1999

INTRODUCED BY   Senator Chesbro and Assembly Member Gallegos

                        FEBRUARY 23, 1999

   An act to amend Sections 124715, 124725, and 124735 of, to add
Sections 124570 and 124745 to, and to repeal and add Sections 124555
and 124710 of, the Health and Safety Code, relating to health care,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 584, Chesbro.  Primary health care services:  rural areas.
   Existing law requires the department to contract and cooperate
with local government agencies and voluntary nonprofit organizations
in connection with the development of local health programs for
seasonal agricultural and migratory workers.
   Existing law also requires the department to provide grants or
loans for the operation of health services development projects in
underserved rural areas.
   This bill would enact provisions applicable to both of these
programs that would require grants for up to 3 years to be made by
the department to eligible, private, nonprofit, community-based
primary care clinics for purposes of implementing these programs.
   The bill would establish payment procedures and grantee reporting
requirements applicable to both programs.
   The bill would provide that these provisions would become
operative on July 1, 2000.
   The bill would appropriate $1,653,000 from the Physician Services
Account in the Cigarette and Tobacco Products Surtax Fund to the
State Department of Health Services for expanded access to primary
care clinics.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 124555 of the Health and Safety Code is
repealed.
  SEC. 2.  Section 124555 is added to the Health and Safety Code, to
read:
   124555.  The department shall grant funds, for up to three years
per grant, to eligible, private, nonprofit, community-based primary
care clinics for the purpose of establishing and maintaining a health
services program for seasonal agricultural and migratory workers and
their  families.
  SEC. 3.  Section 124570 is added to the Health and Safety Code, to
read:
   124570.  (a) Notwithstanding any other provision of law, the
department shall, to the extent that funds are available, provide to
a grantee semiannual prospective payments during a 12-month fiscal
year.
   (b) An amount equal to not more than 50 percent of the total grant
shall be processed for payment to the grantee following the
enactment of the annual Budget Act, and upon formal execution of the
grant by the state.  The processing by the department of the grantee'
s first semiannual prospective payment shall also be contingent upon
both of the following:
   (1) A written request for payment from the grantee.
   (2) Except as provided in this paragraph, the third quarter
progress budget and expenditure report.  If the grantee is currently
under the first fiscal year of a three-year multiple grant, this
requirement shall not apply as a condition for the grantee's first
semiannual prospective payment, unless the grantee is a continuing
grantee from the prior three-year multiple year of the grant.  If the
grantee is currently under the second or third fiscal year of a
three-year, multiple-year grant, the department's processing of the
first semiannual prospective payment for the current grant year shall
be contingent upon the grantee's timely and accurate submission, and
the department's approval of, the third quarter progress and budget
expenditure report from the previous grant year.
   (c) Based upon the grantee's timely and accurate submission of the
first quarterly progress and budget expenditure report from the
grant year, and satisfactory performance under the grant, the
processing of a second semiannual prospective payment of not more
than 40 percent of the total grant shall be processed by the
department for payment to a grantee no earlier than January 1 during
the term of the grant year.  The processing of the grantee's second
semiannual prospective payment by the department shall be contingent
upon all of the following:
   (1) A written request for payment from the grantee.
   (2) The grantee's timely and accurate submission, and the
department's approval, of the first quarterly progress and budget
expenditure report.
   (3) If the grantee is currently under the second or third fiscal
year of a three-year, multiple-year grant, the grantee's timely and
accurate submission, and the department's approval, of the fourth
quarterly progress and budget expenditure report, and the annual
reconciliation report, from the prior year.
   (d) An amount equal to 10 percent of the total grant award shall
be retained by the department, pending satisfactory submission by the
grantee of all quarterly progress and budget expenditure reports and
an annual reconciliation report for the grant year.  Payment of the
withheld 10 percent shall be processed by the department for payment
to the grantee upon the grantee's satisfactory completion and
submission, and the department's approval, of these reports.
  SEC. 4.  Section 124710 of the Health and Safety Code is repealed.

  SEC. 5.  Section 124710 is added to the Health and Safety Code, to
read:
   124710.  The department shall grant funds, for up to three years
per grant, to eligible, private, nonprofit, community-based primary
care clinics for the purpose of establishing and maintaining rural
health services and development projects as specified under this
article.
  SEC. 6.  Section 124715 of the Health and Safety Code is amended to
read:
   124715.  The department may assist community agencies to develop
grant proposals.
  SEC. 7.  Section 124725 of the Health and Safety Code is amended to
read:
   124725.  Project funding shall be for up to three years.
Continuation of funding for a project shall depend on progress toward
achieving the goals of the project.  The director shall make the
final decision to continue or discontinue a project.  In evaluating
the success of a project, the director shall take into account the
number of additional persons who are receiving quality health care as
a result of the operation of the project and the improvement in
health status of the population served by the project.
  SEC. 8.  Section 124735 of the Health and Safety Code is amended to
read:
   124735.  Each grant for a project shall require the grantee agency
to seek third-party reimbursements, including Medi-Cal and private
insurance, for any person served under the grant.  Each grant shall
require the grantee agency to provide reports to the department on
reimbursements and may require the grantee agencies to contribute all
or part of the proceeds of reimbursements to the department for
deposit in the State Treasury in accordance with regulations to be
adopted by the department after the regulations are approved by the
Director of Finance.
  SEC. 9.  Section 124745 is added to the Health and Safety Code, to
read:
   124745.  (a) Notwithstanding any other provision of law, the
department shall, to the extent that funds are available, provide to
a grantee semiannual prospective payments during a 12-month fiscal
year.
   (b) An amount equal to not more than 50 percent of the total grant
shall be processed for payment to the grantee following the
enactment of the annual Budget Act, and upon formal execution of the
grant by the state.  The processing by the department of the grantee'
s first semiannual prospective payment shall also be contingent upon
both of the following:
   (1) A written request for payment from the grantee.
   (2) Except as provided in this paragraph, the third quarter
progress budget and expenditure report.  If the grantee is currently
under the first fiscal year of a three-year multiple grant, this
requirement shall not apply as a condition for the grantee's first
semiannual prospective payment.  If the grantee is currently under
the second or third fiscal year of a three-year, multiple-year grant,
the department's processing of the first semiannual prospective
payment for the current grant year shall be contingent upon the
grantee's timely and accurate submission, and the department's
approval of, the third quarter progress and budget expenditure report
from the previous grant year.
   (c) Based upon the grantee's timely and accurate submission of the
first quarterly progress and budget expenditure report from the
grant year, and satisfactory performance under the grant, the
processing of a second semiannual prospective payment of not more
than 40 percent of the total grant shall be processed by the
department for payment to a grantee no earlier than January 1 during
the term of the grant year.  The processing of the grantee's second
semiannual prospective payment by the department shall be contingent
upon all of the following:
   (1) A written request for payment from the grantee.
   (2) The grantee's timely and accurate submission, and the
department's approval, of the first quarterly progress and budget
expenditure report.
   (3) If the grantee is currently under the second or third fiscal
year of a three-year, multiple-year grant, the grantee's timely and
accurate submission, and the department's approval, of the fourth
quarterly progress and budget expenditure report, and the annual
reconciliation report, from the prior year.
   (d) An amount equal to 10 percent of the total grant award shall
be retained by the department, pending satisfactory submission by the
grantee of all quarterly progress and budget expenditure reports and
an annual reconciliation report for the grant year.  Payment of the
withheld 10 percent shall be processed by the department for payment
to the grantee upon the grantee's satisfactory completion and
submission, and the department's approval, of these reports.
  SEC. 10.  Sections 1 to 9 of this act shall become operative on
July 1, 2000.
  SEC. 11.  There is hereby appropriated the sum of one million six
hundred fifty-three thousand dollars ($1,653,000) from the Physician
Services Account in the Cigarette and Tobacco Products Surtax Fund to
the State Department of Health Services, in augmentation of Item
4260-111-0233 of the Budget Act of 1999, for expanded access to
primary care clinics.
  SEC. 12.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to provide funding necessary for the expansion of access
to primary care clinic programs and to make other changes necessary
for the operation of those programs, at the earliest possible time,
it is necessary that this act go into immediate effect.
